Warner Capital Pty Ltd v Shazbot Pty Ltd [2024] NSWCA 245

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Warner Capital Pty Ltd v Shazbot Pty Ltd [2024] NSWCA 245 Hearing dates: 19 March 2024 Decision date: 15 October 2024 Before: Gleeson JA at [1]; White JA at [2]; Kirk JA at [82] Decision: Appeal dismissed with costs. Catchwords: PARTNERSHIPS AND JOINT VENTURES – partnership accounts – valuation of uncompleted insolvency administrations – where taking of account required hypothetical valuation of work in progress and residual goodwill of insolvency practice – whether lack of comparable transactions determinative – whether hypothetical vendor would pay a "discount" to hypothetical purchaser to acquire book of administrations – where impermissible for insolvency practitioner to require or accept a "discount" to take on book of administrations – where insolvency practitioner able to resign or seek leave to resign from unprofitable administrations. Legislation Cited: Bankruptcy Act 1966 (Cth), s 180 Corporations Act 2001 (Cth), ss 473(1), 545, 595 Cases Cited: In Re Trocevski (Trustee), Moran A Bankrupt [2023] FCA 355 Re Abdulrahman (Bankrupt) (No 2) [2011] FCA 899 Re Gollant [2017] FCA 1158 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 2) [2019] NSWSC 1114 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 5) [2023] NSWSC 1322 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 6) [2024] NSWSC 81 Shazbot Pty Ltd v Warner Capital Pty Ltd [2018] NSWSC 1645 Spencer v The Commonwealth of Australia (1907) 5 CLR 418; [1907] HCA 82 Warner Capital Pty Ltd v Shazbot Pty Ltd [2020] NSWCA 121 Category: Principal judgment Parties: Warner Capital Pty Ltd (First Appellant) Anthony John Warner (Second Appellant) Clarence Street Partners Pty Ltd (Third Appellant) Debtfree Pty Ltd (Fourth Appellant) Shazbot Pty Ltd (First Respondent) Steven Barry Kugel (Second Respondent) Representation: Counsel: J Stoljar SC / J R Anderson (Appellants) E Finnane / D Farinha (Respondents)